SEA Quarterly Update Q2-2019

Events

Meetups and workshops

Luno Indonesia held Bukber & Meetup on 25 May 2019 at Tjikini Lima in the Menteng area of ​​Central Jakarta. We received a warm welcome from participants who had arrived two hours before the event started!

Loyal customers, along with some new faces, joined the event keen to learn more about cryptocurrency. We began our two hour program by having iftar together just as we heard the Maghrib prayer.

The enthusiasm of participants made the event even more lively despite the atmosphere of fasting in the holy month of Ramadan. We hosted several activities including games, Instagram challenges, and quizzes. Some participants also managed to score Luno vouchers and merchandise. Check out the event video below

Regulatory Developments

Global and regional movements

The Financial Action Task Force (FATF), the inter-governmental body who sets the standards for combating money laundering, terrorist financing and other related threats adopted and issued an interpretative note to Recommendation 15 on New Technologies (INR. 15). 

This interpretative note describes how countries and service providers must comply with its recommendations to prevent the misuse of cryptocurrencies for illicit purposes.

They also issued the “Guidance For A Risk-Based Approach To Virtual Assets (VAs) and Virtual Assets Service Providers (VASPs)”, intended to help national authorities in understanding and developing regulatory and supervisory responses to VAs and VASPs, and private sector entities seeking to engage in virtual asset activities or operations in understanding their Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) obligations and how they can effectively comply with these requirements.

Malaysia – 31 May 2019, the Securities Commission announced 3 cryptocurrency exchange companies receiving conditional approval to be Recognized Market Operators (Digital Asset Exchange), Luno and two other exchanges. The approved companies are given up to 9 months to fulfill the conditions set by the SC before given full approval.

Indonesia – 13 Feb 2019, Indonesia’s Futures Exchange Supervisory Board (BAPPEBTI) announced the new regulatory framework for cryptocurrency (Regulation No. 5/2019) essentially recognising Bitcoin and other digital currencies as a trading commodity.

Singapore – the Monetary Authority of Singapore (MAS) issued two public consults in 2Q2019.

10 April 2019, MAS issued a public consultation on MAS’ proposed regulations for payment services providers (e.g. cryptocurrency exchanges). Consult closed in May 2019.

6 June 2019, MAS issued a public consultation on the proposed AML/CFT requirements for payment services providers. Notably, a separate set of requirements was developed to address AML/CFT requirements applicable for payment services providers dealing in cryptocurrency. Consult closed on 5 Jul 2019.

Thailand – Early May 2019, the Thailand Securities and Exchange Commission (SEC) announced amendments made to the Securities and Exchange Act of 2019. The amendments aim to help Thailand introduce blockchain use in trade and security tokenisation. This is a positive development following Thailand SEC’s approval of the country’s first initial coin offering portal in March.

The Philippines – According to local reports in early April, the Bangko Sentral ng Pilipinas (BSP) has approved 3 more cryptocurrency exchanges, bringing the total number of approved cryptocurrency exchanges to 10.